Herrmann confirms that on August 1 he will retire as Waddell & Reed Financial [profile] CEO while remaining executive chairman of the company. Phil Sanders, senior vice president and chief investment officer of Ivy Funds [profile] parent Waddell, will take Herrmann's place as CEO while keeping the CIO hat.

Sanders, 56 has worked at Overland Park, Kansas-based Waddell for 18 years as a PM, after working with BofA Capital Management. He rose to CIO of Waddell in 2011. Sanders is an alumnus of the University of Michigan and of UNC-Charlotte. Sanders co-PM's Ivy's three-star, bronze-rated, $1.7-billion Ivy Large Cap Growth Fund.

Herrmann, 73, has worked at Waddell for 45 years. He rose to CEO in 2005 and added the chairman title in 2010.

"I believe now is the time for the next generation to move the company forward and position it for future growth," Herrmann states, adding that he is "confident that [Sanders] is the right person for the position."